FUNDAMENTALS OF INSURANCE TEST FINAL EXAM AND PRACTICE EXAM QUESTIONS
2025 COMPLETE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
A person insured under a general liability policy written for a U.S. insured would apply in Germany under
which of the following circumstances? - (ANSWER)The insured accidentally injuries another while
vacationing in Germany
The type of authority an agent has that may lead the public to resonably believe the agent is acting on
behalf of an insurer is called? - (ANSWER)implied authority
The dwelling Basic Form automatically provides coverage against fire, lighting, and - (ANSWER)Internal
explosion
Under an Ocean Marine policy, a general average loss is: - (ANSWER)A partial loss resulting from the
sacrifice of cargo to save remaining property
an insurance policy is considered a unilateral contract because: - (ANSWER)The insurance company is
the only party that is legally obligated to perform under the insurance contract
If a homeowners insured carries an amount of insurance on his home equal to at least 80% of the
replacement cost of the dwelling, then what is the rule of indemnification that applies if the home is
destroyed? - (ANSWER)The insured may be indemnified for the replacement value of the property up to
the policy limits
The right to request an appraisal belongs to: - (ANSWER)The insured or insurer
Flood insurance provided by the national flood insurance program (NIFP) is available for? - (ANSWER)All
of the following ( Homes and their contents, business and their contents, and mobile homes and their
condos
,FUNDAMENTALS OF INSURANCE TEST FINAL EXAM AND PRACTICE EXAM QUESTIONS
2025 COMPLETE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
The personal auto policy's comprehensive physical damage coverage covers which of the following? -
(ANSWER)Damage caused by hitting an animal
The Commercial General Liability claims-made coverage form may contain retroactive date. This date is
the date: - (ANSWER)Before which the claims-made form will not cover a claim
A personal auto policy covers all of the following drivers if an insured car EXCEPT: - (ANSWER)A persona
who steals the car
An insured need Liability, Property and medical payments coverage for a 30-foot speedboat with a 75hp
engine. This boat could be covered under a: - (ANSWER)Boat owners or watercraft package policy
Bid bonds, payment bonds and performance bonds are examples of? - (ANSWER)Contract bonds
All of the following are time element coverages EXCEPT: - (ANSWER)Valuable papers coverage form
Which of the following is an insurable risk? - (ANSWER)Hail damage to the roof of a car
A supplemental extended reporting period extends coverage: - (ANSWER)For 5 years
An insurance policy has a $25,000 per occurrence limit. If the insured has a $5,000 covered loss during
the policy period, how much coverage is available for another covered losses that occur during the
remained of the policy period? - (ANSWER)$25,000
, FUNDAMENTALS OF INSURANCE TEST FINAL EXAM AND PRACTICE EXAM QUESTIONS
2025 COMPLETE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
Additional living expense coverage include under the broad and special dwelling forms protects the
insured against? - (ANSWER)Extra living costs insured when the home becomes uninhabitable due to
damage by a peril insured against
Which Commercial Inland Marine transportation form is used to insure a carries liability for damage to
cargo it is transporting - (ANSWER)Motor truck cargo policy
The insured has $1 million Personal Umbrella policy with a $5,000 retention limit. For a $7,000 loss not
covered by an underlying contract but covered under the umbrella, the insurance company would pay: -
(ANSWER)$2,000
Which of the following would not be eligible for coverage under a personal auto policy? - (ANSWER)A
motorcycle
Which of the following is NOT a category of the nationwide definition? - (ANSWER)Excess liability
The employee Theft insuring agreement in the commercial crime policy covers loss of what type of
property? - (ANSWER)Money
Which of the following would not be covered under a typical homeowners policy? - (ANSWER)Land
In most states, workers' compensation laws are: Compulsory - (ANSWER)Compulsory
Which Commercial Crime insuring agreement includes coverage for defense costs? - (ANSWER)Forgery
or Alteration
2025 COMPLETE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
A person insured under a general liability policy written for a U.S. insured would apply in Germany under
which of the following circumstances? - (ANSWER)The insured accidentally injuries another while
vacationing in Germany
The type of authority an agent has that may lead the public to resonably believe the agent is acting on
behalf of an insurer is called? - (ANSWER)implied authority
The dwelling Basic Form automatically provides coverage against fire, lighting, and - (ANSWER)Internal
explosion
Under an Ocean Marine policy, a general average loss is: - (ANSWER)A partial loss resulting from the
sacrifice of cargo to save remaining property
an insurance policy is considered a unilateral contract because: - (ANSWER)The insurance company is
the only party that is legally obligated to perform under the insurance contract
If a homeowners insured carries an amount of insurance on his home equal to at least 80% of the
replacement cost of the dwelling, then what is the rule of indemnification that applies if the home is
destroyed? - (ANSWER)The insured may be indemnified for the replacement value of the property up to
the policy limits
The right to request an appraisal belongs to: - (ANSWER)The insured or insurer
Flood insurance provided by the national flood insurance program (NIFP) is available for? - (ANSWER)All
of the following ( Homes and their contents, business and their contents, and mobile homes and their
condos
,FUNDAMENTALS OF INSURANCE TEST FINAL EXAM AND PRACTICE EXAM QUESTIONS
2025 COMPLETE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
The personal auto policy's comprehensive physical damage coverage covers which of the following? -
(ANSWER)Damage caused by hitting an animal
The Commercial General Liability claims-made coverage form may contain retroactive date. This date is
the date: - (ANSWER)Before which the claims-made form will not cover a claim
A personal auto policy covers all of the following drivers if an insured car EXCEPT: - (ANSWER)A persona
who steals the car
An insured need Liability, Property and medical payments coverage for a 30-foot speedboat with a 75hp
engine. This boat could be covered under a: - (ANSWER)Boat owners or watercraft package policy
Bid bonds, payment bonds and performance bonds are examples of? - (ANSWER)Contract bonds
All of the following are time element coverages EXCEPT: - (ANSWER)Valuable papers coverage form
Which of the following is an insurable risk? - (ANSWER)Hail damage to the roof of a car
A supplemental extended reporting period extends coverage: - (ANSWER)For 5 years
An insurance policy has a $25,000 per occurrence limit. If the insured has a $5,000 covered loss during
the policy period, how much coverage is available for another covered losses that occur during the
remained of the policy period? - (ANSWER)$25,000
, FUNDAMENTALS OF INSURANCE TEST FINAL EXAM AND PRACTICE EXAM QUESTIONS
2025 COMPLETE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
Additional living expense coverage include under the broad and special dwelling forms protects the
insured against? - (ANSWER)Extra living costs insured when the home becomes uninhabitable due to
damage by a peril insured against
Which Commercial Inland Marine transportation form is used to insure a carries liability for damage to
cargo it is transporting - (ANSWER)Motor truck cargo policy
The insured has $1 million Personal Umbrella policy with a $5,000 retention limit. For a $7,000 loss not
covered by an underlying contract but covered under the umbrella, the insurance company would pay: -
(ANSWER)$2,000
Which of the following would not be eligible for coverage under a personal auto policy? - (ANSWER)A
motorcycle
Which of the following is NOT a category of the nationwide definition? - (ANSWER)Excess liability
The employee Theft insuring agreement in the commercial crime policy covers loss of what type of
property? - (ANSWER)Money
Which of the following would not be covered under a typical homeowners policy? - (ANSWER)Land
In most states, workers' compensation laws are: Compulsory - (ANSWER)Compulsory
Which Commercial Crime insuring agreement includes coverage for defense costs? - (ANSWER)Forgery
or Alteration
